I have spent some time during lockdown and its aftershock thinking about economic depressions, which we are once again feted to enter, just over ten years after the last Great Recession.

But there have been many myths around economic depressions. In fact, many simply signal a shift in economics.

The British depression of 1873-1896 caused real hardship. This was a result of the economic opening up of the prairies, the pampas and Australia to farming, combined with falling freight rates by land and sea, lowered the cost of food.

In 1870, Britain produced half the world’s coal. But by the mid-1920s, it produced barely a fifth as producers in both the New and Old worlds dug coal for a third of the British cost.

Distress among coal miners, agricultural workers and the landed gentry who had built their fortunes on coal and farming was palpable. Rural areas depopulated and emigration soared.

In the economy as a whole, however, nominal wages were at least stable and prices fell. And most of the economy in fact prospered.

The 1920s were a difficult time for the UK, especially for traditional industries such as iron and steel, shipbuilding and coal mining, exacerbated by austerity and competition.

But in 1931, Britain enjoyed a boom, driven by new industries like cars and aircraft building. Yet the popular narrative is that this was a period of unemployment and deprivation. In a period of structural economic change, the losers were again more visible than the winners.

In the early 1980s. Unemployment rose to three million. But while traditional industrial output fell, new services — which are still with us — expanded and thrived. But when all the data came in, it became clear that the recession was much less severe than predicted.

Output fell by less than 3% in 1980-1981 and grew strongly thereafter. There is now much gloom about a post-Covid British economy. It sure looks bad: businesses shutter up and job losses increase daily.

But maybe a shake-out and a technological leap forward is just what the economy needs. As in any recession, companies have to cut costs, improve efficiency and change their business practices. This does not mean that the economy as a whole may not benefit.

Online shopping is soaring, and a shift from consumption to savings and investment may improve stability. Employers have found that working from home raises productivity and many new business opportunities have opened up.

For now, there should be no need to worry about markets, the global economy, inflation or the euro. We must not fall prey to the doom and gloom narrative of another depression or recession.

This is simply a time of recalibration, brought on quicker by Covid. But whether Britain will over-perform, as it has done in past periods of structural change, or underperform with dire consequences, is far from clear and rests with the government.

Today’s National Day

NATIONAL INNERGIZE DAY!

PUBLISHERS NOTICE

“I want to cancel all my subscriptions”

Dear Streetwise Customer, 

Streetwise member Roger had been using Guy Cohen’s trading system for years …

But suddenly he wanted to cancel ALL of his subscriptions.

Why?

Well, take a look…

Yep, Roger had just made over £300,000 (c. $400,000 at the time) using Guy’s trading system …

SO MUCH money he simply wanted to stop trading and “enjoy a comfortable retirement.”

As Roger says in the email, “I am now approaching my mid 70s and the time has come to enjoy my money rather than spend time making more of it.”

I wholeheartedly agree with Roger … what’s the point in making money if you can’t enjoy it!

So, how about you? Have you made enough money to enjoy “a comfortable retirement” yet?

If not then I have good news for you …

I’ve persuaded Guy to hold an exclusive live training session for Streetwise members only.

During this short training he’ll walk you through the exact same 3-step system that made Roger $400,000 (by the way, he’s made even more since!).

And even show you how to automate it so you can profit in less than 30 minutes per day.

The training takes place at 8pm on Thursday. 

And it’s absolutely FREE.

Reserve your free spot now. 

Seriously … 

Why wouldn’t you want to discover how Roger made $400.000? 

Maybe you’ll even become Guy’s next protege and make that kind of money too! 

But, that can only happen if you attend. 

So reserve your spot now. 

Best wishes,

 John Harrison 

PS. 

By the way, hedge fund managers trading with tens of millions of dollars every day pay Guy amounts like $122,177 and $105,399 to use his systems … 

 And yet I’ve arranged for you to receive his personal training for FREE. 

So, what are you waiting for? 

Reserve your spot now.